Banks offering construction loans

Depending on the deposit term, several banks have increased interest rates by 0.1 - 0.2 percentage points. The interest rate offered by VPBank to individual customers early November was up 0.1 percentage point over October's deposit rates. Specifically, interest rates for individual customers with term deposits of 1-36 months ranged from 5.1 percent to 7.3 percent per annum. At OCB, from November 10, interest rates have also been raised by 0.1-0.2 percentage points per annum for some fixed term deposits. The bank's highest deposit rate is 7.7 percent for a 36-month term. Interbank rates are also seeing an upward trend, with the average interest rate for all durations has increased by 0.126-0.24 percentage points. Senior bank officials say that the increase in deposit interest rates in November and December is merely a seasonal move by banks to attract idle funds in anticipation of increased borrowing by businesses in the new year. Some banks have increased interest rates to … [Read more...] about Banks up deposit rates, businesses worry

(VEN) - Despite slower growth compared with the same period last year, credit grew steadily in the first five months of 2018. A State Bank of Vietnam (SBV) representative indicated positive changes in credit for prioritized areas. Commercial banks are boosting capital supply for the economy to meet business demand towards year’s end. According to Pham Thanh Ha, Director of the SBV’s Monetary Policy Department, by May 31, 2018 credit grew 6.16 percent compared with the end of 2017. This was a lower growth rate compared with 6.9 percent of the first five months last year. A National Financial Supervisory Commission report shows that in the first five months of this year, credit in VND increased by an estimated 5.6 percent and accounted for 91.9 percent of the total. At the same time, credit in foreign currency grew eight percent but accounted for a mere 8.1 percent; medium and long-term credit growth slightly decreased compared with the same period last year and grew about … [Read more...] about Surge in bank credit for prioritized areas

Low-cost housing developments await preferential loans The Saigon Times Daily A low-cost condo project is seen in HCMC’s Tan Binh District. Despite strong demand for low-cost apartments in major cities, property firms have shown little interest in this segment due to potential problems – PHOTO: TL HCMC - Despite strong demand for low-cost apartments in major cities, property firms have shown little interest in this segment due to potential problems, according to a report by Dau tu Tai chinh. HCMC alone has some 274,600 workers, of whom 69% are migrant workers. Only 8.54% of those migrant workers stay in dorms built by employers. Most workers have to rent cheap rooms that lack basic amenities and safety features. In addition, 80% of some 500,000 students in HCMC come from other localities, whereas very few universities are able to provide sufficient space in their dormitories for them. According to the HCMC Institute for Development Studies, up to 81,000 households … [Read more...] about Low-cost housing developments await preferential loans

The National Financial Supervisory Committee (NSFC) estimates that real estate-related credit makes up over 20 per cent of banks’ total outstanding loans. — Photo tinnhanhchungkhoan.vn Small lenders find it difficult to reduce cross-ownership in other banks The State Bank of Viet Nam has sought the Government’s permission to allow credit institutions more time to sell their stakes in other lenders since many smaller ones are struggling to do so. Through a circular in 2015 it had set a February 2016 deadline for lenders to bring their ownership thresholds within the limits prescribed by the Law on Credit Institutions. It wants to extend this to June 30, 2019. The law allows individuals to own up to 5 per cent of the charter capital of a bank and institutions to own 15 per cent except in cases of distressed or equitised banks and ownership by a strategic foreign investor. The extension of the deadline is aimed at helping small banks, who have reportedly had problems … [Read more...] about SBV tries to extend divestment deadline for small banks

According to the State Bank of Vietnam (SBV)’s a report on the credit outstanding balance for property investment and business activities in the fourth quarter of 2017 , the total value of outstanding credit for the real estate sector reached VND471.022 billion ($20.6 billion) in the end of 2017. Loans for urban construction projects; loans for housing construction, repair, purchase and rent; and loans for businesses involving other realty products are biggest credit surplus, amounting to over VND100 trillion each. In a latest report of the Housing and Real Estate Market Management Agency of the Ministry of Construction, the credit surplus in the real estate sector account 8 percent of the total and is still within safe threshold. In the first five months of this year, credit for sectors bearing high risk was under good control while credit for build-operate-transfer and real estate projects grew by 2.15 percent and 2.19 percent respectively, said the central bank. As per … [Read more...] about Central bank tightens property credit